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International Cooperation

We will afford one another the widest measures of cooperation and assistance in asset recovery.

Country: Indonesia

Status: ongoing

Themes: Asset recovery

Last updated: December 2020

Classification:

Concrete: Other | New: Other | Ambitious: Other

  • 7 Evidence:

    Indonesia and Swiss Confederation Sign MLA Agreement

    These countries have established MLA agreements with Indonesia

    Evaluation of Prevention Action and Corruption eradication related to asset recovery

    Review of implementation of the United Nations Convention against Corruption (2nd review)(April 25, 2018)

    Indonesia’s Commitment Report to UNCAC and G20 (April 20, 2020)

    Law No. 1/2006 MLA on Criminal Matters

    Law No. 5/2020 MLA Indonesia with Swiss Confederation

  • 3 Notes:

    Following the second UNCAC review results, Indonesia is declared to be quite good at using several networks and instruments to facilitate international cooperation in asset recovery. Indonesia itself is a member of the APG, Egmont Group, the Asset Recovery Interagency Network - Asia Pacific (ARIN-AP), and an observer at the Camden Asset Recovery Interagency Network (CARIN).

    Until now, Indonesia is a party to five multilateral agreements that regulate provisions related to asset recovery and has ratified six bilateral agreements in the field of mutual legal assistance. The Indonesian House of Representatives also recently passed the Treaty on Mutual Legal Assistance (MLA) in Criminal Matters between the Republic of Indonesia and The Swiss Confederation becomes law. The ratification was decided in a plenary meeting on Tuesday (14/7). It will be followed up with a plan to form a special team to track assets resulting from crimes, including corruption and money laundering in Switzerland. The agreement is the 10th such deal signed by the government, after previously signing MLA agreements with ASEAN member nations, Australia, Hong Kong, China, South Korea, India, Vietnam, and the United Arab Emirates.

    Requests related to asset recovery are carried out based on bilateral and multilateral agreements, including those stipulated in UNCAC. If the agreement is not available, a claim can be submitted directly to the Minister of Law and Human Rights. PPATK can directly convey information about money laundering to its overseas partners (Article 90 (2) of the TPPU Law), or through networks such as INTERPOL and Egmont Secure Web.

    However, MLA agreements in themselves would have little effect if domestic law enforcers did not use them effectively. For instance, in the early 2000s, United Kingdom authorities froze a bank account containing 36 million euros (the US $ 40.6 million) owned by Tommy's investment company, Garnet Investments, citing suspicions that the funds were proceeds the graft. Nevertheless, Indonesian law enforcement never charged Tommy with committing graft, and the account was eventually unfrozen in 2011.

    The government and the DPR must immediately pass the Asset Recovery Bill, which has been in arrears in DPR and government legislation since 2012. Several criminal acts of corruption in it have not been regulated in Indonesia, such as the illegal increase in wealth, trading influence, corruption in the private sector, and bribery of foreign public officials. If the bill has been passed, the apparatus will no longer depend on Indonesia's presence of corruptors. Even though they are fugitives, their assets suspected of originating from corruption can be confiscated in court. The proof method is also considered more accessible because it adopts the concept of reversing the burden of proof.

    The Ministry of Law and Human Rights, as the central authority, is still not maximal in ensuring that overseas authorities can obtain every information related to the results of corruption promptly and allow legal remedies to be taken immediately in response to requests from abroad. As a CA, the Ministry needs to be more active in responding to mutual legal assistance requests in mega corruption cases.

    Mutual legal assistance should not be rejected solely based on deficiencies from a technical or formal non-material nature. Such situations must be resolved proactively by increasing consultation between the two parties. Allocating more staff and resources to work with foreign countries/jurisdictions on drafting or clarifying requests will help avoid such shortages. The difficulty in the case of Joko Tjandra's repatriation, which has attracted a lot of public attention lately, should not have occurred if relations between law enforcers had been well developed.

    Updated: October 31, 2020

    Indonesia recent signing of a mutual legal assistance (MLA) agreement with Switzerland. The agreement is the 10th such deal signed by the government, after previously signing MLA agreements with ASEAN member nations, Australia, Hong Kong, China, South Korea, India, Vietnam and the United Arab Emirates. The MLA allows law enforcement regarding white collar crime such as corruption, money laundering, tax evasion and others to be more effective.

    Peer reviewer: 1

    Updated: April 30, 2020

    No change since 2017. Strategy 2012-2025 on page 6.

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